About this programme
The 4E scheme provides project-based financing to existing MSMEs for energy efficiency and renewable energy investments. It supports equipment upgrades, solar installations, and machinery that reduce energy consumption and greenhouse gas emissions, with technical support from energy auditors. It is run by SIDBI.
The support is delivered through the programme’s own structure, and the form it takes is set by the issuing authority. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in energy efficiency, renewable energy. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
MSME identifies energy efficiency project and obtains Detailed Energy Audit from BEE-certified auditor. SIDBI finances up to 90% of project cost through a term loan. Loan is disbursed post-approval and completion of project milestones. Interest rates are concessional (2.05% to 3.85% below standard lending rate).
Who can apply
Micro, Small, or Medium Enterprises in manufacturing or service sectors with minimum 3 years operational history and demonstrated cash profits in the previous 2 years. Unit must have completed a Detailed Energy Audit by a BEE-certified energy auditor.
How to apply
- Conduct Detailed Energy Audit (DEA) through BEE-certified energy auditor
- Prepare Detailed Project Report (DPR) and project quotations
- Approach SIDBI branch with completed application, KYC documents, and DPR
- Submit DEA, GST, and MSME registration certificates
- Await SIDBI approval and loan sanctioning
Documents you’ll typically need
- Application form and questionnaires
- MSME/Udyog Aadhaar registration certificate
- GST documents
- Detailed Project Report (DPR)
- Detailed Energy Audit (DEA) from BEE-certified auditor
- Machinery/equipment quotations
- Identity and address proof
- Financial statements
The exact checklist depends on the programme and your specifics.
Frequently asked
What is a Detailed Energy Audit and who should conduct it?
A Detailed Energy Audit must be conducted by a BEE (Bureau of Energy Efficiency) certified energy auditor and documents the current energy consumption and recommended efficiency measures.
How much can I borrow under the 4E scheme?
Minimum loan is Rs. 10 lakhs and maximum is Rs. 150 lakhs, up to 90% of project costs but not exceeding one-fifth of annual turnover.
What is the repayment period for 4E loans?
Repayment period is 36 months for loans up to Rs. 100 lakh and 60 months for larger loans, with 6-month moratorium period.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.